Which Is a Better Investment, Kratos Defense & Security Solutions, Inc. or RTX Corporation Stock?

By Tudor Pop
April 16, 2026
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Sifting through countless of stocks in the Aerospace & Defense industry can be tedious, and sometimes two stocks are just too similar to judge which is the better investment. If you’re on the fence about investing in Kratos Defense & Security Solutions, Inc. or RTX Corporation because you’re not sure how they measure up, it’s important to compare them on a few factors before making your decision.

Read on to learn how Kratos Defense & Security Solutions, Inc. and RTX Corporation compare based on key financial metrics to determine which better meets your investment needs.

About Kratos Defense & Security Solutions, Inc. and RTX Corporation

Kratos Defense & Security Solutions, Inc., a technology company, provides technology, hardware, products, system, and software for the defense, national security, and commercial markets in the United States, other North America, the Asia Pacific, the Middle East, Europe, and Internationally. The company operates through Kratos Government Solutions and Unmanned Systems segments. It offers virtualized ground systems for satellites and space vehicles, including software for command and control, telemetry, and tracking and control; jet powered unmanned aerial drone systems and hypersonic vehicles and rocket systems; propulsion systems for drones, missiles, loitering munitions, supersonic systems, spacecraft and launch systems, command, control, communication, computing, combat, and intelligence surveillance and reconnaissance; and microwave electronic products for missile, radar, missile defense, space, and satellite; and counter unmanned aircraft systems, directed energy, communication and other systems, and virtual and augmented reality training systems for the warfighter. The company primarily serves national security-related agencies, the U.S. Department of Defense, intelligence and classified agencies, international government agencies, and domestic and international commercial customers. Kratos Defense & Security Solutions, Inc. was formerly known as Wireless Facilities, Inc. and changed its name to Kratos Defense & Security Solutions, Inc. in August 1999. Kratos Defense & Security Solutions, Inc. was incorporated in 1994 and is headquartered in San Diego, California.

RTX Corporation, an aerospace and defense company, provides systems and services for commercial, military, and government customers worldwide. It operates through three segments: Collins Aerospace (Collins), Pratt & Whitney, and Raytheon. The Collins segment offers aerospace and defense products, and aftermarket services for civil and military aircraft manufacturers and commercial airlines, as well as regional, business, and general aviation, defense, and commercial space operations. This segment designs, manufactures, and supplies electric power generation and management and distribution, environmental control, flight control, air data and aircraft sensing, engine control, and engine nacelle systems, as well as engine components; cabin interiors, including seating, oxygen, food and beverage preparation, storage and galley, lavatory, and wastewater management systems; connected aviation solutions and services; and systems solutions for connected battlespace, test and training range systems, crew escape systems, and simulation and training. It also provides spare parts, overhaul and repair, engineering and technical support, training and fleet management solutions, and asset and information management services. The Pratt & Whitney segment supplies aircraft engines for commercial, military, business jet, and general aviation customers; and produces, sells, and services military and commercial auxiliary power units, as well as offers fleet management and aftermarket maintenance, repair, and overhaul services. The Raytheon segment provides defensive and offensive threat detection, tracking, and mitigation capabilities for government and commercial customers. This segment offers sensors, mission orchestration and satellite control products, and software. The company was formerly known as Raytheon Technologies Corporation and changed its name to RTX Corporation in July 2023. RTX Corporation was incorporated in 1934 and is headquartered in Arlington, Virginia.

Latest Aerospace & Defense and Kratos Defense & Security Solutions, Inc., RTX Corporation Stock News

As of April 15, 2026, Kratos Defense & Security Solutions, Inc. had a $14.0 billion market capitalization, compared to the Aerospace & Defense median of $5.1 million. Kratos Defense & Security Solutions, Inc.’s stock is down 1.9% in 2026, up 8.9% in the previous five trading days and up 124.61% in the past year.

Currently, Kratos Defense & Security Solutions, Inc.’s price-earnings ratio is 574.3. Kratos Defense & Security Solutions, Inc.’s trailing 12-month revenue is $1.3 billion with a 1.6% net profit margin. Year-over-year quarterly sales growth most recently was 21.9%. Analysts expect adjusted earnings to reach $0.777 per share for the current fiscal year. Kratos Defense & Security Solutions, Inc. does not currently pay a dividend.

As of April 15, 2026, RTX Corporation had a $267.0 billion market cap, putting it in the 99th percentile of all stocks. RTX Corporation’s stock is up 6.8% in 2026, down 3.6% in the previous five trading days and up 54.68% in the past year.

Currently, RTX Corporation’s price-earnings ratio is 40.0. RTX Corporation’s trailing 12-month revenue is $88.6 billion with a 7.6% net profit margin. Year-over-year quarterly sales growth most recently was 12.1%. Analysts expect adjusted earnings to reach $6.835 per share for the current fiscal year. RTX Corporation currently has a 1.4% dividend yield.

How We Compare Kratos Defense & Security Solutions, Inc. and RTX Corporation Stock Grades

Stock evaluation requires access to huge amounts of data and the knowledge and time to sift through it all, make sense of financial ratios, read income statements and analyze recent stock movements. AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way suitable for investors of all knowledge levels, to help investors streamline and work through such data.

AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A‐F grades for each of five key investing factors: value, growth, momentum, earnings estimate revisions and quality. Here, we’ll take a closer look at Kratos Defense & Security Solutions, Inc. and RTX Corporation’s stock grades to see how they measure up against one another.

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Kratos Defense & Security Solutions, Inc. and RTX Corporation Stock Value Grades

Company Ticker Value
Kratos Defense & Security Solutions, Inc. KTOS F
RTX Corporation RTX F

Successful stock investing involves buying low and selling high, so stock valuation is an important consideration for stock selection.

Buying stocks that are going to go up typically means buying stocks that are undervalued in the first place, although momentum investors may argue that point.

AAII’s A+ Investor Value Grade derives from a stock’s value score. The Value Score is the percentile rank of the average of the percentile ranks of the price-to-sales ratio, price-earnings ratio, enterprise-value-to-EBITDA (EV/EBITDA) ratio, shareholder yield, price-to-book-value ratio and price-to-free-cash-flow ratio. The score is variable, meaning it can consider all six ratios or, should any of the six ratios not be valid, the remaining ratios that are valid. To be assigned a Value Score, stocks must have a valid (non-null) ratio and corresponding ranking for at least two of the six valuation ratios.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are a good value and so on.

Kratos Defense & Security Solutions, Inc. has a Value Score of 2, which is Ultra Expensive. RTX Corporation has a Value Score of 20, which is Ultra Expensive.

The Value Stock Winner: No Clear Winner

Neither Kratos Defense & Security Solutions, Inc. or RTX Corporation has a high enough value grade to be considered a “winner.” Investors who are considering these companies should do additional due diligence and research to see if either could be a good addition to their portfolio. It’s important to look at a wide range of financial metrics in order to determine if Kratos Defense & Security Solutions, Inc. or RTX Corporation is the better investment when it comes to value.

Kratos Defense & Security Solutions, Inc. and RTX Corporation Growth Grades

Company Ticker Growth
Kratos Defense & Security Solutions, Inc. KTOS C
RTX Corporation RTX A

The foundation of growth investing is seeking out stocks of companies exhibiting strong, consistent and prolonged growth that is expected to continue into the future.

In order to compute the growth score and assign it a letter grade, the percentile ranks for each of three components‐consistency of annual sales growth, five-year sales growth rankings adjusted for extreme levels, and consistency of positive annual cash from operations‐must be determined. These three rank figures are added together, and the sum is ranked against the entire stock universe to arrive at a company’s Growth Score to create an equal distribution of grades.

The companies in the bottom 20% of the stock universe receive Growth Grades of F, considered to be very weak, while those in the top 20% receive A grades, which are considered very strong.

Kratos Defense & Security Solutions, Inc. has a Growth Score of 56, which is Average. RTX Corporation has a Growth Score of 100, which is Very Strong.

The Growth Grade Winner: RTX Corporation

As you can clearly see from the Growth Grade breakdown above, RTX Corporation has a more attractive growth grade than Kratos Defense & Security Solutions, Inc.. For investors who focus solely on how a company is growing relative to other companies in the same industry, RTX Corporation could be a good stock to add to their portfolio. However, it’s important for investors to analyze multiple factors based on a wide range of metrics before deciding whether to buy.

Kratos Defense & Security Solutions, Inc. and RTX Corporation’s Estimate Revisions Grades

Company Ticker Earnings Estimate
Kratos Defense & Security Solutions, Inc. KTOS B
RTX Corporation RTX B

Earnings estimate revisions scores consider the magnitude of a company’s earnings surprise in its last two reported fiscal quarters. Often, positive surprises beget further positive surprises‐or at least continued sales growth (the exact opposite is generally true, too).

Estimate revisions offer an indication of what analysts are thinking about the short-term prospects of a firm. Estimate revisions are based on the statistical significance of a firm’s last two quarterly earnings surprises and the percentage change in its consensus estimate for the current fiscal year over the past month and past three months.

Kratos Defense & Security Solutions, Inc. has a Earnings Estimate Score of 61, which is Positive. RTX Corporation has a Earnings Estimate Score of 73, which is Positive.

The Earnings Estimate Revisions Grade Winner: It’s a Tie!

Looking at the Earnings Estimate Revisions Grade breakdown above, both Kratos Defense & Security Solutions, Inc. and RTX Corporation have a grade of B. For those focusing solely on a company’s estimate revisions, other financial metrics will need to be evaluated to determine whether Kratos Defense & Security Solutions, Inc. or RTX Corporation is a better fit.

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Other Kratos Defense & Security Solutions, Inc. and RTX Corporation Grades

In addition to Estimate Revisions, Growth and Value, A+ Investor also provides grades for Momentum and Quality.

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Momentum grades help uncover stocks experiencing anomalously high rates of return; research finds that stocks with high relative levels of momentum tend to outperform, whereas those with low levels of momentum tend to continue underperforming.

AAII’s A+ Investor Quality Grade comes from the ranking of key metrics. Specifically, the quality grade is the percentile rank of the composite of return on assets (ROA), return on invested capital (ROIC), gross profit relative to assets, buyback yield, change in total liabilities to assets, accruals, Z double prime bankruptcy risk (Z) score and F-Score.

These 2 key factors, when combined with the above, provide a holistic view into a particular stock. Further, by joining A+ Investor you can see whether Kratos Defense & Security Solutions, Inc. and RTX Corporation pass any of our 60+ stock screens that have outperformed the market since their creation.

So, Which Is the Better Investment, Kratos Defense & Security Solutions, Inc. or RTX Corporation Stock?

Overall, Kratos Defense & Security Solutions, Inc. stock has a Value Score of 2, Growth Score of 56 and Estimate Revisions Score of 61.

RTX Corporation stock has a Value Score of 20, Growth Score of 100 and Estimate Revisions Score of 73.

Comparing Kratos Defense & Security Solutions, Inc. and RTX Corporation’s grades, scores and metrics can act as a solid basis to determine whether they may be a good investment or not. You’ll also want to look at your portfolio’s asset allocation as well as your risk tolerance and financial goals to see if either of these stocks would make a good fit for you. AAII can help you figure out which investments align with your individual needs and preferences.

Investors are encouraged to do their own due diligence and research. In this way, individuals can effectively become managers of their own assets‐without having to rely on others for financial independence. You can count on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis.

A+ Investor adds to our qualitative teaching with a powerful data suite to help you whittle down investment choices to find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.

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AAII Disclaimer

We make no representations or warranties that any investor will, or is likely to, achieve profits similar to those shown, because past, hypothetical or simulated performance is not necessarily indicative of future results. Before making an investment decision, you should consider your circumstances and whether the information on our content is applicable to your situation. This information was prepared in good faith, and we accept no liability for any errors or omissions. The full disclaimer can be read here.



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